Do you want to generate greater profits? 3 points that support automation
When considering how to increase profitability, do you focus on increasing revenues or cutting costs? Over the last several months, August Brown has been working with industrial goods manufacturers that are seeking to increase revenues and profitability. In this sector, it is easier to impact profitability in the short run by focusing on cost reductions.
To achieve impactful cost reductions, an organization must be willing to accept short term cost increases in order to achieve sustained cost reductions. Two areas that many companies overlook that can make a sizable contribution is the implementation of artificial intelligence and automation.
In this article, we focus on the 3 key points of consideration that can support the successful adoption of cost reducing automation at a manufacturer.
#1: Maximizing the labor force
An automation platform with an easy learning curve makes it possible to re-scope a traditional line position with minimal investment. Strategically repurposing unskilled workers to more skilled tasks not only enhance the manufacturer’s bottom line, but also improves the workers’ skill sets. This is a win-win situation – the employee gains added skills, expertise, and job satisfaction, and the manufacturer gains the benefit of profiting in a competitive marketplace.
#2: Increasing ROI
What value can automation provide over time and how long will it take to achieve a return on the total investment? When calculating costs, some expenses that often increase the project budget, are more than the price tag of the manufacturing automation tool itself. You’ll want to consider hardware and software cost, programming time, work cell integrations, employee training, usage (hours) and other customization costs.
#3: Improving customer response time
The advantage of automating is the speed with which you can get a system into production at your factory. Today customers have multiple offerings, a variety of products, and often highly customized options. This makes the rate of production line changes and assembly to meet customer demands very challenging. If your time to market is slow, customers can move to your competitors to fulfill their needs.
If you are a manufacturer and want to increase profitability, automation can be achieved at a lower cost through multiple tactics. To learn more, contact August Brown at firstname.lastname@example.org and one of our consultants will offer you a free strategy session.
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